Quantitative Analysis: 1 page memo
Conde_Nast
ZACHMEMO1.docxMemo
To: Richard Doe, The Bank, Loan Officer
Cc: Nathan Villaume, Lenny Boy, Co-Owner
From: Zach Boylston, Lenny Boy, Analyst
Date: November 28, 2018
Subject: Increase Lenny Boy’s Line of Credit to Increase Sales and Revenue
Lenny Boy’s wholesale and retail sales are increasing. We will not reach our sales goals if we do not increase our line of credit (LOC). I recommend our LOC be increased to $600k for 2019.
Increasing our LOC will lower the risk of losing 200k in business.
Lenny Boy is a brewery that produces kombucha and craft beer. We are local industry leader in fermented beverages. A build out of a kitchen is our goal to attract more customers. This will create an advantage against local competitors.
My team gathered quarterly data from the past 2 years. We recorded sales from 2017 versus the sales from 2018. The results are provided in Table 1. The variance analysis is based on the average per quarter. The average sales increase per-quarter from 2017 to 2018 is 50%.
Lenny Boy’s sales increase per quarter:
· Quarter 1: $
· Quarter 2: $
· Quarter 3: $
· Quarter 4: $
I recommend we:
· Upsell digital only customers to include print by showing a $6.21 savings per lead.
· Spend $100K on advertising to target digital only competition. Show savings to customer of combining print and digital advertising.
In 2017 are LOC was 200k lower than it is now. The increase in investment solves the issue to attract more customers and retain them once they are inside. The LOC will launch us to the next competitive level and grow brand awareness.
Zach Boylston
Kombucha Wholesale Analysis
Total Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 2017 2018 48701 99737.1 114542.06 96087 98798.5 155054.43 173535.6 99998.499999999971
Kegged Beer Analysis
Total Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 2017 2018 24956 33470 44299 44742 56117 60446 53634 23347
Packaged Beer Analysis
Total Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 2017 2018 34557 83449 68420.28 61391 79836.5 100373.5 32667
Taproom Beer Sales
Total Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 2017 2018 172322.21999999997 161918.26999999999 124383.63000000005 144421.85999999999 155598.88 161496.74999999997 130526.85000000002 46470.929999999986
